Product Description

In the classroom, activity-based costing (ABC) looks like a great way to manage a company's limited resources. But executives who have tried to implement ABC in their organizations on any significant scale have often abandoned the attempt in the face of rising costs and employee irritation. "Time-Driven Activity-Based Costing" is the solution to the problems associated with large-scale ABC implementation. In this book, Kaplan and Anderson offer a revised model where managers can estimate the resource demands imposed by each transaction, product, or customer, rather than rely on time-consuming and costly employee surveys. In their new model, Kaplan and Anderson focus on the two parameters managers need to estimate: how much it costs per time unit to supply resources to the business activities (the total overhead expenditure of a department divided by the total number of minutes of employee time available) and how much time it takes to carry out one unit of each kind of activity (as estimated or observed by the manager). Rather than endlessly updating and maintaining ABC data, this book with allow managers to spend their time addressing the deficiencies the model reveals: inefficient processes, unprofitable products and customers, and excess capacity. Kaplan and Anderson lead the discussion of Time-Driven ABC in the first seven chapters, followed by individual cases studies of actual implementations by Acorn consultants in diverse settings.

Product Details

• Amazon Sales Rank: #182902 in Books
• Published on: 2007-04-04
• Original language: English
• Number of items: 1
• Binding: Hardcover
• 266 pages

Features

• ISBN13: 9781422101711
• Condition: NEW
• Notes: Brand New from Publisher. No Remainder Mark.
• Click here to view our Condition Guide and Shipping Prices

From the Back Cover

In the classroom, ABC looks like a great way to manage a company’s resources. But many executives who have tried to implement ABC on a large scale in their organizations have found the approach limiting and frustrating. Why? The employee surveys that these companies used to estimate the resources required for business activities proved too time consuming and expensive.

This book introduces time-driven activity-based costing (TDABC), an easier and more powerful approach for measuring cost and profitability that exploits the data now available from ERP systems. With TDABC, managers spend less time and money gathering and maintaining data and more time addressing the problems that TDAMC reveals—such as inefficient processes, unprofitable products and customers, and excess capacity.

The authors show how managers can build a TDABC system by answering two fundamental questions:

Customer Reviews

Comprehensive guide
Activity-based costing can provide important insights; however, it also can be complex and difficult to implement and sustain. Time-driven activity-based costing more straightforwardly uses time as the primary metric for assessing costs, since almost all costs have a time dimension. Robert S. Kaplan and Steven R. Anderson provide a thorough, if highly technical, introduction to time-driven activity-based costing. Chapter by chapter, they show readers how to estimate process times, calculate capacity cost ratios, and plan and implement a TDABC system. Their detailed case studies illustrate the benefits of this clear, sophisticated tactic for budgeting, cost management, process improvement, benchmarking and acquisition evaluations. getAbstract thinks their book will be important to any executive, manager or academician who must understand operational costs.

New ABC Paradigm
This is the book that I have been waiting for a long time. It addresses the major issues about the calculation of the resource drivers. Because it is based on linear regression model, it has a more scientific base than the previous ABC method. It can also be easily integrated into dynamic Activity-Based Costing Simulation model.

TDABC - a very interesting book
This book has given me a great insight in an easier way to allocate resources down to costumers and products using Time-driven cost driver rates.

However, I am a bit sceptical about the Capacity Cost rate, which seems to be the key element to this models success... especially the way the authors describes the way to calculate this rate.. But with some methodical procedure behing when implementing the model, it is possible to get good results.... that's my experience

All in all, it is a great book about the fundamentals when wanting to use TDABC in your business.